Despite the lack of any economic data, the New Zealand dollar rallied over 1 percent against the US dollar, leaving it within a few pips of its 22 year high.
With 8.25 percent interest rates, many people argued that it was just a matter of time before we saw a strong breakout in the New Zealand dollar. The power of today’s move suggests that a new multi-decade high will be made in the currency early next week even though the only piece of market moving data from New Zealand is not due for release until Thursday. The Australian dollar continued to gain strength, but the rally could lose steam as the calendar next week is completely devoid of any Australian economic data. The Canadian dollar on the other hand weakened marginally against the US dollar after a disappointing retail sales report. Like New Zealand, there are no Canadian releases until the end of next week.